Data from ITTO's timber sector tracking in China, Indonesia, Brazil, Congo, Mexico, Gabon and Malaysia shows that the global timber index (GTI) threshold for the seven pilot countries is below 50 percent, implying a downward trend in the timber sector overall.
The Brazilian index is 472%, the best performer among 7 countries;
This was followed by Indonesia with 457%；
The Congo index is 347%；
The China index was 341%；
The Mexico index was 324%；
The Gabon index was 314%；
The Malaysian index is 268%。
The Global Timber Index report points out that the Red Sea conflict is affecting the stability of the global economy and freight transport, which is also having an impact on the timber industry. Timber traders from Brazil, China, Indonesia and Malaysia all reportedTransportation costs are rising and shipping volumes are decreasingandShipping slows downsituation.
In addition to the transport challenges, Gabonese timber traders noted a slowdown in production activities in the NKOK SEZ as the number of orders has dwindled, the lack of sales channels for their timber. Mexican timber producers, on the other hand, have a high turnover rate in the timber industry, which leads to volatile order volumes. And because China is in the Lunar New Year holiday, timber trading with other countries has declined.
Unlike Gabon and Mexico, timber traders in Brazil, Congo and Malaysia said they saw an increase in orders in January compared to December 2023, indicating an improvement in international demand.
It is not only the reduction in orders and transportation problems mentioned in the report, but also the reduction in production in the timber-producing countries.
Compared to previous years, the decline in global production in the last two years, and especially in 2023, is noticeable (mainly in Europe, North America and Africa). Equipment costs increased due to intermittent operations of the division's timber mills, which were not offset by timber exports**.
It is worth mentioning that, despite the sluggish performance of the international timber market, some countries have made good progress in the legislation and sustainable development and management of the timber sector.
For example, Brazil's Minister of Environment and Climate Change said at the World Economic Forum's Annual Meeting in January that environmental governance and monitoring actions will reduce deforestation in the Amazon by about 50% in 2023 compared to 2022, equivalent to a reduction of about 2500 million tonnes of CO2 emissions.
Mexico's National Institute of Ecology and Climate Change (IECCs) has developed an innovative instrument (AccutofTM Dart Express) that uses real-time mass spectrometry to detect wood "fingerprints" that can quickly, accurately and cost-effectively identify wood from a small sample, which will help in the fight against illegal logging and**.
Summary
The negative impact of the disruption of the timber chain caused by the epidemic is being translated into other directions. The main challenges facing the international timber market in 2023 are:Production, demand and transportationThree major aspects, and it is likely to continue until 2024.
According to the development trend of the international timber market in previous years, especially the domestic timber market, the change in import demand mainly occurred in the second quarter. At present, China's timber market is still facing certain pressure. However, judging from the situation of overtaking imports in the fourth quarter of 2023, while the domestic market is under pressure, it also has great development potential.